Homebuyers need not worry about house price movements

Posted: 31 Oct 2007 10:48:57 GMT

Potential homebuyers should not be worried about entering the market if house prices do begin to fall.

Potential homebuyers should not be worried about entering the market if house prices do begin to fall.

That is according to Key Financial Consultants, which says that any potential drop in house prices should only be of concern to property investors.

The firm points out that people who are looking merely to buy a home should not view their purchase as an investment and therefore have no reason to be concerned about house price movements.

"If you're buying a home then you should not see it as an investment. So if it's a case of buying a home to get out of rented accommodation, then yes it is still an asset worth having because you're going to hold it for a long time," said Dominic Mansley, managing director of the firm.

"It doesn't really matter what happens in the market, as long as the mortgage is affordable.

"It doesn't really matter whether the value goes up or down – because it isn't an investment, it's a home," he added.

Buyers who are concerned about house price movements will have been pleased this week to learn that Nationwide is reporting monthly property price growth of 1.1 per cent in October.

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